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DHL PLANS INVESTMENTS ACROSS SUB-SAHARAN AFRICA

DHL PLANS INVESTMENTS ACROSS SUB-SAHARAN AFRICA

On July 6, 2015

Agency report

Although the foreign direct investments in fell by 8.4 per cent in 2014, capital investment in Africa surged to $128b, a year-on-year increase of 136 per cent, according to the 2015 Africa Attractiveness Survey.

It also stated that the average investment increased to $174.5m per project, up from $67.8m in 2013.

The Managing Director of DHL Express, sub-Saharan Africa, Charles Brewer, said that this was positive for the continent’s outlook.

Brewer said that a number of mega deals, instead of numerous smaller deals, were stimulating the FDI in the region.

“The perception of investing in Africa has traditionally been rather negative, coupled with the fear of the unknown.

“However, in 2014, traditional investors refocused their attention on the continent, attracted by its strong macroeconomic growth and outlook, improving business environment, a rising consumer class, abundant natural resources and infrastructure development.

“These factors have resulted in global capital investment and job creation hitting an all-time high during 2014 on the continent,” he said.

According to him, efficient infrastructure is critical for ensuring the effective functioning of the continent. “As it stands, underdeveloped infrastructure drives up logistics costs, and it is estimated that supply chain costs are up to nine times more expensive in Africa in comparison to other regions in the world.

“With increased FDI and continued macroeconomic growth, I believe that Africa will be an economic powerhouse in the future. The region is abound with untapped opportunities and has much scope for growth,” he added.

Brewer said that it was for this reason that DHL Express continued to see SSA as one of the most prominent areas of growth for the business globally, and therefore continue to invest significantly in the region.

He said, “DHL Express continues to invest significantly in SSA in order to ‘Lift The Platform’, to expand our capabilities and cater for continued growth across all markets, with planned investment of millions of euros across SSA in 2015.

“Major projects underway include upgrades to facilities and shipment handling systems in South Africa, Kenya, Uganda, DRC, Rwanda, Angola, Zimbabwe and Botswana. Later this year, we will begin planned upgrades in Ghana, Nigeria, Ethiopia, Benin, Cameroon, Guinea Republic, Gabon, Tanzania, Mauritius and Cote D’Ivoire.”

He added, “In addition to facility upgrades, we have a number of vehicle and technology upgrades taking place this year, along with ongoing employee and SME development programmes.”

“Continued focus and investment in market-leading infrastructure will better connect Africa to the rest of the world, and create more opportunities for African businesses, allowing them to trade across borders and with new target markets. DHL Express is committed to not only connecting others to Africa, one of the world’s largest frontiers for growth, but to making the rest of the world the next frontier for Africa.”

Link: http://www.punchng.com/business/technology/dhl-plans-investments-across-sub-saharan-africa/

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